Federal Wage System Workers Finally Get Fair Pay

January 14, 2025 - Today marks a significant victory for thousands of federal workers as the Office of Personnel Management (OPM) issued a final rule to ensure Federal Wage System (FWS) employees receive locality pay increases on par with General Schedule (GS) workers. This long-awaited change, advocated for by the National Federation of Federal Employees (NFFE) for over two decades, will address the historical pay disparity between FWS and GS employees and boost hiring, retention, and morale among federal workers.

The rule, based on a recommendation from the Federal Prevailing Rate Advisory Committee (FPRAC), will impact over 15,000 federal workers who will receive higher pay. Those who shift into a new locality with a lower schedule will not see their pay decrease. The regulation will take effect October 1, 2025.

NFFE National President Randy Erwin expressed his enthusiasm for the rule change, stating, "For over 20 years, NFFE has advocated for this rule change, which is critical for thousands of our members at the Department of Defense and other agencies. It was fundamentally unfair that two employees working side by side, doing the same jobs, would be paid differently. The correction of this injustice will boost hiring, retention, and morale among federal employees across the country. It will also provide a much-needed pay raise for NFFE members, who like so many other Americans are feeling the effects of inflation and higher costs of living."

The OPM received 585 comments in support of the policy change, with just one comment opposing the rule change. The overwhelming support for the rule demonstrates the widespread recognition of the need to address the pay disparity between FWS and GS employees.

Erwin also praised President Biden, Senator Bob Casey, and Acting OPM Director Rob Shriver for their leadership in fixing this issue. He noted that NFFE members have been advocating for this change since the early 2000s, working with both Republicans and Democrats to bring about this much-needed reform.

In conclusion, the final rule issued by the OPM to ensure FWS employees receive locality pay increases on par with GS workers is a significant step forward in addressing the historical pay disparity between these two groups of federal employees. This change will not only provide a much-needed pay raise for thousands of workers but also boost hiring, retention, and morale within the federal workforce. The overwhelming support for the rule change demonstrates the widespread recognition of the need to address this issue, and the leadership of President Biden, Senator Bob Casey, and Acting OPM Director Rob Shriver in bringing about this reform is commendable.